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Should You Purchase or Lease Your Next Truck?

Should You Purchase or Lease Your Next Truck?

When it comes to acquiring new trucks to expand your fleet, purchasing and leasing both offer advantages and disadvantages depending on your needs and goals. Here are some things to consider when the time comes to purchase or lease your next commercial vehicle.


Buying a vehicle generally involves obtaining a loan from a bank unless you have the funds to purchase the vehicle in full. The loan will be for the amount of the truck, minus any money you provide as a down payment, and repayment will be spaced out over a set time period. Once you have paid off the loan including any accrued interest, you take ownership of the vehicle.

Purchasing offers less flexibility for repayment, but comes with fewer fees which are typically associated with leasing. Purchasing also allows you to build equity in the vehicle, and once you own the truck, you can do what you want with it, such as selling it to increase capital for buying a newer model truck, or adding more vehicles for your fleet.


Unlike the purchase of a truck, which involves financing the cost of the actual vehicle, leasing is the financing of the operation or depreciation of the truck. With a lease, you pay the difference between the initial value of a vehicle (except for sales tax), and the anticipated depreciated amount at the conclusion of the lease. Once you have ended the lease, you will not necessarily own the vehicle, though many leases allow for purchase, or trade in for another vehicle or the remaining amount.

Depending on the type of lease you choose, there is greater flexibility for repayment than with purchasing, allowing allocation of funds to other areas of your company where needed. However, there are fees associated with leases (security deposits, acquisition fees, etc.) and mileage and maintenance that could offset the benefits of flexibility in the long run.

Need money to purchase or lease your next commercial vehicle? Consider factoring your accounts receivable with Match Factors to improve business cash flow. Better cash flow allows to better meet your working capital needs in addition to improving your credit, allowing you to receive better financing or leasing terms.

Apply today to factor your freight invoices with Match Factors.